Credit Acceptance (NASDAQ:CACC) Stock Price Down 5.5% – Here’s What Happened

Credit Acceptance Corporation (NASDAQ:CACC)’s stock price was down 5.5% during mid-day trading on Friday . The stock traded as low as $471.00 and last traded at $466.7340. Approximately 62,510 shares were traded during mid-day trading, a decline of 72% from the average daily volume of 223,269 shares. The stock had previously closed at $494.00.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. Weiss Ratings reissued a “hold (c)” rating on shares of Credit Acceptance in a report on Wednesday, January 21st. TD Cowen raised their target price on shares of Credit Acceptance from $460.00 to $470.00 and gave the stock a “hold” rating in a research note on Friday, January 30th. Finally, Zacks Research upgraded shares of Credit Acceptance from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. One investment analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $470.00.

Credit Acceptance Stock Down 8.0%

The stock’s fifty day simple moving average is $480.37 and its 200-day simple moving average is $476.24. The stock has a market cap of $4.89 billion, a P/E ratio of 12.46 and a beta of 1.29. The company has a debt-to-equity ratio of 4.10, a quick ratio of 16.91 and a current ratio of 16.91.

Credit Acceptance (NASDAQ:CACC) last announced its quarterly earnings data on Thursday, January 29th. The credit services provider reported $11.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.30 by $1.05. The firm had revenue of $408.20 million for the quarter, compared to the consensus estimate of $582.63 million. Credit Acceptance had a net margin of 18.29% and a return on equity of 28.86%. The business’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same period in the prior year, the company posted $10.17 earnings per share. As a group, research analysts forecast that Credit Acceptance Corporation will post 53.24 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Credit Acceptance news, CFO Jay D. Martin sold 4,340 shares of the firm’s stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $512.55, for a total value of $2,224,467.00. Following the sale, the chief financial officer owned 25,963 shares in the company, valued at $13,307,335.65. This trade represents a 14.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Kenneth Booth sold 2,000 shares of the company’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $508.00, for a total transaction of $1,016,000.00. Following the transaction, the director owned 22,832 shares of the company’s stock, valued at $11,598,656. This trade represents a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 11,576 shares of company stock worth $5,824,119 in the last ninety days. 6.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Credit Acceptance

A number of institutional investors and hedge funds have recently bought and sold shares of CACC. M&T Bank Corp bought a new stake in shares of Credit Acceptance during the fourth quarter worth about $208,294,000. Boston Partners acquired a new position in shares of Credit Acceptance during the third quarter worth $206,327,000. Universal Beteiligungs und Servicegesellschaft mbH grew its stake in shares of Credit Acceptance by 764.8% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 203,879 shares of the credit services provider’s stock worth $91,652,000 after purchasing an additional 180,304 shares during the last quarter. Smith Thomas W acquired a new stake in Credit Acceptance in the fourth quarter valued at $42,083,000. Finally, First Trust Advisors LP bought a new position in Credit Acceptance during the 2nd quarter worth $26,422,000. Institutional investors and hedge funds own 81.71% of the company’s stock.

About Credit Acceptance

Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.

Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.